Given the Following,calculate Contribution Margin and Net Income

question 50

Essay

Given the following,calculate contribution margin and net income:
$\begin{array}{lrrr} & && \text { Indirect } \\ \text { Net Sales } & \text { DVD } & C D & \text { Expense } \\ \text { Cost of Goods Sold } & \$ 7,500 & \$ 3,900 & \\ & 4,100 & 1,800 &\\\text {Operating Expenses (Indirect)}&&&\$ 2,600 \end{array}$

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Definitions:

Variable Costs

Costs that vary directly with the level of production output or service delivery.

Mixed Costs

Costs comprising both constant and fluctuating elements, altering in aggregate with activity levels yet not in direct correlation.

Per Unit Basis

Calculations or measurements made by dividing the total by the number of units to find the amount corresponding to a single unit.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.